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tv   Cavuto Coast to Coast  FOX Business  January 23, 2019 12:00pm-2:00pm EST

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>> correct. stuart: i would thought that it would help the market. it did not help the market. we moved from a plus 100. we're now at minus 52. 40 odd points. the steny hoyer statement didn't have effect i thought it would on the market. time is up. neil, it is yours. neil: you think about it, they're not budging. no wall, can call it whatever you want, but not a wall, these people have to be slapped. grow up. thank you my friend. president meeting with conservative leaders on immigration proposal. he will take up two different measures, neither which expected to get 60 votes needed. either democratic-friendly one, republican friendly one. we could be back to square one. far better read, capitol hill senior producer chad pergram. >> when you something 60 votes
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to the senate, two version of it, everybody thinks that the deal is dead. you do have to get 60 votes to finish debate on proposals, one from republicans, the one president trump propounded over weekend, another one by democrats. what that means, could you even get a simple majority approving both but you have to get over that procedural barrier. so when you have 60 vote thresholds in the senate, that usually means it is pre-baked neither side is going to get what it wants. that said, you could see a scenario, when you start to creep close to 60 votes. the comments by steny hoyer in the house of representatives is key. bennie thompson, chair of house homeland security committee they're trying to put together something to match the president's number on border security, border security, $5.7 billion, nothing for a wall. steny hoyer in his remarks i just came from, indicated he said they would offer a healthy sum for border security. so right now the sides are still talking past each other.
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once again today in the house of representatives, neil, the house will move a series of six bills to reopen the government for the rest of the fiscal year. and then attached to that, will be interim spending bill for the department of homeland security through february 28th. democrats contend you have to reopen the government before you can have these conversations about immigration and border security down the road, neil. neil: chad, thank you,. steny hoyer, under nancy pelosi differed from the speaker when it came to whether a wall is immoral. listen. >> i think physical barriers are part of the solution. neil: you don't share nancy pelosi's view that a wall is immoral? >> look, i think, depends upon what a wall is used for whether it is more or immoral. if it is protecting people it is moral. if it is imprisoning people it may well be immoral. that is the not issue of the issue we want border security. we want to make sure people coming into the united states of
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america are authorized to do so, and we know that they have come in. neil: did you catch that then? he is saying a wall is not immoral to him. also saying in the same interview, talked about the idea, sure the president can come buy to speak to congress if he wants in the well of the house, even though nancy pelosi effectively disinvited him? what does it all mean? is there a hint of compromise among warring words back and forth? to "axios" reporter steph kight s there progress behind the scenes. >> there is vote on two different bills tomorrow. neither look like they will pass. the republican bill, includes provisions for daca and tps, if you look there is nothing there for democrats. at same time democrats will not deal with the border security issue until we reopen the government. seems like we're at another
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stand still over this issue of immigration and we're waiting to see, whether there is compromise. there has been one idea, that "axios" reported that is floating around in the white house which would include providing a pathway for green cards for daca recipients which could be a potential option that would win over democrats, but again, it would likely stir up some anger from conservatives who would see this as amnesty. neil: meantime, one measure that president is open to that, addressing daca thing, children of illegals here, who are in this limbo status, he has said it has got to be 5.7 billion for that wall. i understand the democrats to respond, we're open to 5 plus billion for security. but without calling it a wall. that wall thing is a big nut to crack, isn't it? >> it really is. this is something that the president has been insisting on for a long time now. and over the past year he has lowered the amount of money that he is demanded from congress to
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build this wall. but he is really sticking to the 5.7 billion this time. he wants to insure that is not just money that can be put toward any kind of barrier, fixing fencing or other security, border security options. he really wants to insure that the money is used for a wall. and lately he has been describing that as the steel slats at the border. so this has become a sticking point. it is also such a political issue that democrats are unwilling to give the money to the president's is demanding. we come back to the gridlock, we're not seeing in any compromise on either side on issue of the wall? neil: we have issue whether the president can speak to congress next week in the well of the house as presidents specifically do for state of the union address. nancy pelosi urged against it. steny hoyer seemed to indicate with me, i don't have a big problem one way or the other with it? cot president force the issue, am i coming or do they lock the doors on him? >> looks like the president is
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planning to go ahead with the speech unless there is an official retraction of the invitation to the house. where that seems to stand right now. neil: he does need the invitation to understand this. he just can't waltz in there? >> he does need a invitation to come in. there is option the president give as speech in different manner, doesn't look like the state of the union address we've seen in the past. this is kind of a murky situation right now and we've seen some heat between nancy pelosi and the president, so i think that is obviously a part of this right now too. neil: what is your sense how this is factoring out in polls? i know the president's negatives are up, highest they have been of their presidency, 57% in one poll, still comfortably ensconced approval ratings in the 40s, which is about the range people gotten used to him seeing him at but i do notice slightly more americans than before this started are now also getting rattled by the
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democrats. there is mutual frustration building, what do you think? >> yeah, there is certainly a frustration building especially that the government is still closed and has been for almost a month now. we're looking at hundreds of thousands of federal workers now possibly missing a second paycheck. and that, that hurts many families who are working struggling to make ends meet. i think many people in the u.s. see that as a big issue. they see it as a symbol of the fact that our government isn't working together and reaching a conclusion. and many blame the president. most americans tend to put the emphasis on president trump and saying that he is the one who is keeping the government closed but there is frustration as you said with democrats, that they're not, that they're not meeting the president in the middle. that there isn't compromise on either side. neil: what a mess. stef, thank you very, very much. >> thank you. neil: president's chief economic advisor kevin hassett saying you know if this drags on we could see virtually no growth this quarter, 0% growth, much like we
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often reported later on, damages the economy moment it hits and rebuilding efforts after it, not oranges here. get read from ox bow advisors managing partner. we'll get weak first quarter numbers, even if it were to end today or weaker than expected but what is the longer term fallout, do you think? does it enter into your strategy? >> well, for us, and i think you know this, neil, we are looking for a weaker economy anyway in 2019 but what happens is, that the disconnect between economists in washington and wall street to main street is that they don't realize what happens in an average person going around out there. if you see so many of these agencies that have to make approvals and issue checks and do all of that sort of thing, it has nothing to do with 800,000. it has to do what you trickle down in the economy.
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and so our ideas, it will probably affect it more than they think it will. >> now, we already have taken off the table the time being, this could change, was not inclined to hike interest rates in this environment. i believe you were in that camp even before the shutdown, but now what? some worry that this could just push weak numbers into negative numbers, are you? >> well the last time we spoke, i mentioned to you that we thought there was a decent chance you would get a recession in the last half of the year and what happens is, it sets up for this thing, sort of a domino effect. you go from more and more and more, it is hard to turn around a big machine like this. i think that is what a lot of people fail to realize when they're sort of playing these games. that it is a delicate mix here. neil: let's talk a little bit what is happening on the earnings front. i think we're about 1/5 through this process here, with s&p 500 companies reporting and most have come out better than they're already ratcheted down
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estimates so there was a low bar for them. their guidance by and large, you know, a little bit more positive than people thought, ibm included. is it your sense that earnings, in other words, than those forecasts more to the point ultimately saved the day? >> i don't think so for 2019. if you looked at the fourth quarter, you know, they were expecting, in october, to have 12% increases in 2019. i think that is probably down to around 6 or 7% right now. and, that could actually go lower because, typically people that are doing these forecasts, first of all it is hard to do, secondly, they don't factor in these slowdowns. so as you get slower, and i think that is what we'll do eventually, i think they will ratchet those down. you don't have the effect of the tax deal that came out last year. neil: is bang from the buck for that gone? i find that a little hard to believe? a lot of people are telling me,
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very smart people, it was one-off and it is done? >> well you have to think about how it is set up, you know? the bang for the buck came at one time. neil: right. >> so when you're comparing, doing comparisons, it is already there. so -- neil: in other words, now year-over-year when your like-minded numbers, like-minded tack rates, now it is hard to get through that? i see. >> harder to get, harder to get the move after that because you're already in it. that is where we are at this point. neil: ted, thank you very much. good seeing you again. >> all right, neil, thanks. neil: then there is that chinese trade deal. when a chinese minister is talking optimistically they can cobble together something and soon, something should be received well, but it is not. why is that? because we're not getting a consistent read. it always happens. after this. great news, liberty mutual customizes-
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neil: picture the markets right now already trending down. you got a statement out of chinese vice president, saying u.s. and china can't do a deal without the other, as the march deadline approaches. i want you to think about what he was saying. we cannot have a trade deal with chinese and u.s. are not involved together doing this. to which most economists would say, duh!
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they invite ireland or liechtenstein into this? that is obvious one but you will get a lot of obvious little flashes we get from news and wire services each talking about yes, we're going to meet and confusion as there was yesterday, a subset of ministers, like ministers and the like were going to set the stage for talks next week. that the president and his team we're going to have at the white house. that was put off. there was confusion, larry kudlow had to come out saying that was never really planned, the other big meeting is still on. it is that kind of stuff, like one sentence flashes coming across the wires that can move billions of dollars worth of stock. amazing me. this one is the kicker. we can't have a deal without each other, which would be obvious. anyway, market watchers greg valliere. we have mark avalon and jolting bolton from fox business network.
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we're looking from these comments, deirdre, that is pretty obvious but i'm wondering why they even say stuff like that outside of understanding that we're both jumping off of this together? >> you know, neil, said it so brilliantly with your comments about okay, there was a meeting, that the frum administration turned down. larry kudlow saying there was never a meeting. we really saw the markets move. neil: all over the place. >> with the entire dialogue all day yesterday. there is a lot of confusion but what i will say, is that, we had seen direct foreign investment in the u.s. actually fall in 2018. it is taking a toil. china we're talking about their slower growth figures. it is taking a toll there. from sources i reach out to, one of the worries president tum is more ready to make a deal if china makes some concessions. i'm going to quote one of my sources here, to close the bilateral trade deficit, to be a little more aggressive with
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that. apparently our internal china hawks, lighthizer, one of note, is actually worried about that, saying hang on, don't take that, we need real structural changes. later today at davos, the chinese vice president, he is the one negotiating truce between china and the u.s. will be speaking at davos. i think there will be a lot of open ears for that. investors will look if he speaks about trade and if china is stimulating their own economy. neil: weil competent comments from china's security regulatory official, the equivalent of head of our securities & exchange commission who is paraphrased here by reuters saying i paraphrase, as the president measures success by rise and fall of u.s. stocks. that they're keenly aware this president, perhaps more than any of his other predecessors keenly watches the movement in the markets. and he knows quite well that the
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markets are going to soar on a deal and the chinese know that he wants that badly. what did you make of that. >> i think that weakens his bargaining position because you're right, the market right now is, i would say it is the biggest factor weighing on stocks. we're reading tea leaves because no one knows. neil: right. >> which way this is going to go. you were talking about the tone or the inference or a word here in a sentence there. that is no way to make long-term investment decisions. we're more of a casino in this. every day, will it be red or black? i think the chinese are posturing and positioning just like the president wants to do. that is why there is all this uncertainty. neil: greg, what do you make of progress of these talks and confusion around them, and someone shoots it down, with a report apparently proven false yesterday, talks at lower level were broken down. comments like these i guess meant to sort of ease concerns, two of them have to have a trade deal together which is stating
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the obvious. but how do you play that to understand what is going on? >> i tell you, neil, i think i'm on happy pills today. i think we're getting closer. we're getting closer to a government shutdown deal. but on china i think also there is this reality tv this theater we're up, we're down. of course trump want as deal and i think xi wants a deal. xi has to fear what every communist dictatorship fears, that is social unrest. if we see dramatically falling chinese company, loss of jobs in the manufacturing sector that is not a good story for the chinese. so they equally have reasons to cut a deal. neil: what if it is not equally, deirdre? what if the premise we got on this is wrong? as much as the chinese need a trade deal from the that right now the administration might need the deal more? >> that is the question. when we talk to china hands,
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they say china thinks in terms of decade not centuries. neil: right, right. >> of course our elected officials are very much on the news cycle. as we know to one of our conversation points here, president trump likes to talk about the u.s. economy. he has been tweeting about it again in the past 24 hours. this is so strong. we shouldn't have anything but joy right now. neil: right, right. >> with the underlying statistics. i think it is all about what is most important. i actually could see president trump if the chinese were buying a trillion dollar check, we'll buy a lot of things from u.s. manufacturers and a lot of goods. neil: they already promised that. >> the president countered with not six years, but two years. according to a bloomberg report. chinese said, okay that is too soon. that is that hard. then i gets that particular conversation point stalled at
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that point. but i do think, i feel like the u.s.-china deal will have something before march 1st. i almost feel slightly for what it is worth more optimistic about a resolution for that than our own shutdown. neil: mark, do you make any investment decisions based on on again, off again talks? are you optimistic a deal will be struck and you want to pounce ahead of time because it will be beneficial, presumably? >> i think it is impossible to do that. you have to have a premise in this case, i think we'll get a deal. chinese want to save face. president trump want as victory. they will come away with something more neutered to say they did really well. if we don't get rid of some of these tariffs. even if they escalate, you will be in the situation where they are inflationary, they raise cost of good for u.s. consumer. slowing global growth and rising prices is a terrible combination. so the hope here is that
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prudence, better judgment win out. both sides can hold their heads reasonably high because neither one will sign a deal if they feel humiliated. you make investment decisions based on a reasonable assumption that cooler heads prevail. neil: greg, i give you the final question, and concerns of breaking news developments. you're good at handling all this stuff, president writing nancy pelosi as he is, going to give a state of the union address next week. i will paraphrase couple key points in the letter. thank you for your letter of january 3rd, 2019, sent thome after the long shutdown began inviting me to address the nation january 29th as to the state of the union. as you know i already accepted your kind invitation, however received another letter on january 1th, wherein you expressed concerns regarding security for state of the union address because of shut down. he goes on to say i was contacted by department homeland security and secret service to explain there would be absolutely no problem with this. accordingly there are no security concerns with the state
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of the union address. therefore i will be honoring your invitation and he ends the letter, saying i'm doing it, i'm doing it, i'm doing it! he didn't say that i wanted to keep people awake here. so he will do it. what do you think? >> sure he is. it will be a pr win for him. i think he has the advantage on this the more to be heard on that. just really quick, neil, two other points. there is nothing magical about march 1 as the date for this trade deal. deadlines are made to be extended. i don't worry about march 1. the other point i would make on the china deal, a victory is whatever he declares is a victory. trump has called the north korean talks, nafta talks, big victories even though the jury is still out on both of them. so i do think that at some point, maybe mid to late spring we get an agreement in principle at least with the chinese. neil: all right. we'll watch closely. we're also getting some follow-up on this letter the president wrote to nancy pelosi. that he wants to go ahead and these east concerns by he
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nancy pelosi and others that he can go ahead address the nation next week. the interesting thing about nancy pelosi's reminder wasn't a disinvite, it wasn't an invite, it was just reminder it might not be a good idea. so he is taking the second letter to mean it was an invite if you can get security. that is not what her letter said, but the president of the united states telling her, i'm going to be there. don't lock the doors. this could get interesting. we'll have more after this. across the country bring financial stress to work. if you're stressed out financially at home, you're going to be too worried to be able to do a good job. i want to be able to offer all of the benefits that keep them satisfied. it is the people that is really the only asset that you have. put your employees on a path to financial wellness with prudential. bring your challenges.
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when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. neil: all right, in case you didn't hear, president of the united states writing a letter to nancy pelosi as speaker of the house saying he is ready to address his concerns. there are no security concerns. a state of the union address will be held in the house of representatives, that he thinks her approval is perfunctory. even though there are details they have to iron out to do that, go beyond the president's or speakers wishes. this puts the president's approach in perspective.
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i look forward evening of january 29th, in the chamber of the house of representatives. it would be so very sad for our country if the state of the union were not delivered on time, on schedule and very importantly on location, which would be the well of the house, blake burman from the white house with latest how this all went down. blake. reporter: so very sad, the words you just read, neil. sometimes these are statements written by others. sometimes statements written by the president. i have to imagine that one was dictated by the president himself. there are as you point out there are still other hurdles to be cleared for president trump to go down to the halls of congress, next tuesday night, january 29th, to give state of the union address which is tradition in the halls of congress in a prime time address on national television. that is a joint resolution needs to be cleared by congress. that would normally be a formality, would be no ifs,
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ands, or buts about it in any other year but we're not dealing with any other year at this point. there is city a lot of questions here. one, will nancy pelosi put the joint resolution on the house floor? two, if she does, how might that vote go? or three, if she doesn't, what happens after that? but as you just saw from the president very much intends to go down to congress next tuesday night, deliver the state of the union address. the white house was preparing a couple different tracks. one to do just that. two, potentially do something else on the night of the 28th. but the white house made clear as recently as this morning, they were not going to let nancy pelosi push them around. here is the press secretary sarah sanders this morning. >> the president should be able to address the american people. whether he does that from the halls of congress or does that in another location, the president will talk to the american people on january 29th. as he does nearly every sing --
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single day. reporter: no reaction lo nancy pelosi or democratic leadership. neils as you remind all afternoon long, day 33 of the shutdown, still no movement today. votes in the senate tomorrow, which are probably going to go absolutely nowhere. 800,000 federal workers will most likely miss a second consecutive paycheck on friday and there is still bickering back and forth about the state of the union address. neil? neil: is there any possibility like that, nancy pelosi can come back and say, no, that you misread what i said? you're not invited? reporter: it's a great question and a great point because again as far as we are led to believe here, there has to be some sort of resolution put on the floor that is voted on that allows this to happen. if nancy pelosi were to say i will not bring that to the floor, i thank you for your
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letter, mr. president, very well-written, kind to respond, no. don't have the answer to that, neil. i guess we have six days to figure it all out. neil: i wonder if he is outside of of the capitol, tweeting? >> the president is normally movements are dictated by the secret service whether or not it is safe, right? can we put the president in location x? is it safe, yes or no, how much time do we need it. they have plenty of time to do it. department of homeland security, secret service says it is safe he can do this thing, if he were to show up there, what would stop him and networks from doing this thing? i don't know, it's a good question. neil: this inspires me to come to your home tonight, to raid your refrigerator, order pay-per-view, stay really, really late. reporter: we could sit there to talk about it. neil: that is great stuff. thank you, my friend blake burman in washington. meantime you have all the
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bigwigs, not political bigwigs, corporate bigwigs, investment bigwigs fathering in davos and they are watching what is going on in our nation's capitol and they don't like what they see. they are not red or blue but they're green. they are a lot worried, after this ♪ step up to the stage here. feeling good about that? let's see- most of you say lower a1c. but only a few of you are thinking about your heart. fact is, even though it helps to manage a1c, type 2 diabetes still increases your risk of a fatal heart attack or stroke. jardiance is the first type 2 diabetes pill
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>> the confusion and the environment right now is it a showdown or is it going into recession? nothing we see says it is close to recession. >> i think the markets moved so adversely is that profits will probably only be up in the five, six, seven area. >> right. down from 25% last year. >> so that is sort of shocked the market.
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>> coming here i thought the world was coming to an end. i was convinced by awe the people but the reality is that i like others have said we run the risk of talking ourselves into something. i talk to my peers here. we all are asking each other, where is this coming from? and so i think that clearly there are lots of geopolitical risks. neil: so the read you're getting from some of the big money guys there are risks out there but by and large, things how they stand right now are just fine. this is a summit that is attracting the financial types, the investment manager types, but none of the political types. doesn't seem as big after political event when president trump doesn't show up, theresa may, xi xinping or emannuel macron france. here is charlie gasparino. >> or dr. evil. you have to go around the world to get the sage analysis. neil: stop it. >> just think about it. we might have 2% growth, we
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might not. we might go into recession -- neil: the big guys are getting nervous. should they be? >> neil, what is fascinating about this conference, is how little is said. i mean it is really a waste of time to hear steve schwarzman say -- neil: you know we're over there, right? >> yes. i think the problem is no one really knows. here are two debates out there. neil: isn't better to not know in a beautiful area like davos? >> actually not. it is cold and food sucks. neil: is that right? >> the food is horrible. one good italian restaurant. here is the thing -- neil: what they're foreseeing which is -- >> you don't need to go to davos to know this because i can make a phone call to couple guys on this, sitting at my desk in my office. here it is. on one side, you have people believing that the trump deregulation and tax cuts will overrule, will override any of the global concerns that are out there, and that china is slowing down but our economy will power
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through this where we get two to 3% growth next year. that is one side. the other side, uh-uh, we're not island on to itself. the tax cuts were mostly weighed to businesses. there will be a lot of stock buybacks, not a lot of investing in plant and equipment and the global slowdown will hit us. those are the two things. you don't need to go to davos to learn that that is -- neil: give you a news flash, we are in davos. when ray dal yo of bridgewater associates. >> i know who ray is. neil: not likely democrats succeed in raising taxes to the 70% level and all of that, he did raise the confusion sit in place? >> that the democrats are running the show? neil: that people have a hard time, especially the investment types that think beyond a quarter or two or even a year are now having to look at the uncertainty. i think the way he put it, the unintended consequence of raising taxes on the wealthy and increasing support this seems to
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be getting rattles him. what do you think of that? >> if you have a democratic president and a democratic congress and you still have to get it through probably a republican senate, a tax hike. no,. neil: he is not even thinking it is happening he is talking about -- >> uncertainty? neil: uncertainty going into 2020. >> maybe he that is what he is blaming his lousy returns on. ray is not doing very well. neil: you sound like a hater? >> these guys are blowing so much hot air up the rear ends of the invest public. they're not saying anything. basically they're confusing people. neil: everyone is entitled to their opinion. you have an opinion they're confusing people. you have -- >> my opinion they're a waste of hot air. the real thing is this, are we having that slowdown or are tax cuts pushing us through. neil: have you seen our davos graphics? >> no. neil: have you seen our davos musical intros? >> did you see me in davos
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singing the sound of music. neil: on "imus." >> did you see me interview the swiss miss? neil: none of what you're hearing from them is worrying you? >> no. here is something else, i'm hearing this is one of the more lamer conferences they have had in years. i'm hearing that from everybody on wall street. neil: because the president's not there. and leaders. >> think about it, if the president was there, it would be a great news event. neil: i think you -- >> if trump was there, listen, he went there last year. got hero's welcome because of tax cuts. neil: you're not there. not getting hero's welcome. >> very well. neil: there we go. ralph, skip the graphs of davos thing and we'll go to the netflix thing. >> quote the hills are alive with the sound of music ♪. nah. not gonna happen.
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>> welcome back to "coast to coast." i'm gerri willis from the floor of the new york stock exchange. the markets, they are like the weather today, if you don't like what they're doing one minute, wait a couple minutes there will be something totally different. the dow up 22 points. it started out strongly positive. it went into the negative and now green again. one of the issues regarding that, the president considering imposing sanctions on venezuelan oil companies. venezuela of course an important
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source of the commodity in a market that has been constrained by supply. oil prices are down almost 2%. are they down almost 2% this maybe less than that. much as you see right there. down about half a percent. 52.32. meanwhile investors scouring earnings reports. dow component ibm handily beating bottom line estimate thanks to growing demand for growing cloud and analytic services. the stock is up sharply after the cfo tells the company's strong earnings forecast for 2019 excludes the acquisition of software company red hat. one investor saying ibm may be a buy again. all eyes on ford and chipmaker lam research. we'll watch united rentals. they report, they're an equipment rental company. it is a barometer on the strength of the industrial sector. neil, back to you. neil: thank you very much, gerri willis. keeping track of a shutdown is one thing. keeping track of a strike in
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los angeles with teachers ended after six days is another. it is possible to wrap things up quickly, but not when a strike of similar issues went to denver. they're voting to do the same as thank you l.a. counterparts did. hillary vaughn with the details. reporter: neil, the six day strike in los angeles just ended but in denver the classroom teachers association voted to strike late last night after they reached a stalemate for higher salaries. they put forward a proposal increase teacher pay by 10%. 26.5 million additional dollars but the teacher union rejected the deal. they think most of that is part of an already promised wayne hike to cover costs of living increases. denver public schools superintendent suzanna cordova, says in a statement she knows the teacher's union wanted
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generous offer but the money is not there. denver schools are underfunded. but they cut $10 million from the central support teams to put the latest figure on the table. the strike canby begin as early as next week. if it moves forward, its first strike in denver for 25 years. they are gearing up to keep schools in session. they have 1200 substitute teachers and actively recruiting furloughed federal workers as subs. they are attending furloughed federal jobs workers. neil: between that and oscar nods and golden globe nods, it is on fire. scott martin says if this is proof that netflix is a good bet, maybe you keep betting on it? everything is going netflix's way. the only concern whether momentum could be maintained, that is the number of new subscribers they're able to get to justify all the costs getting
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new programing, what do you think? >> so far it looks like there are some struggles here and there, neil, to your point. let's face it, netflix is currently let's say the dominator in streaming. you have millions and millions of subscribers they have shown the law of large numbers kicks in especially domestically in the u.s. where the growth still happens but it slows. to me really the interesting aspect of netflix is twofold. one is the fact that as you mention they have the ability to raise prices one or two dollars, depending on the service you're getting. especially the growth they're seeing overseas, emerging markets, foreign developed markets. if they have pricing power here, that helps offset some slowing growth in the u.s. and emerging market and developed market growth is still really strong. neil: a lot of people use the analogy like amazon in the beginning where analysts questioned the amount of money jeff bezos was spending to develop infrastructure for global retail powerhouse and
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ordering centers and the rest but is it an accurate analogy? obviously that proved true as the stock rocketed, despite a selloff late last year has been a appreciable performer for owners, what do you think? >> you have to spend to gain. look at chances netflix has taken with their spend over the last couple years? i think we could say it paid off. one thing, netflix has going for it today, maybe it didn't have last year are certainly couple years ago is original content. all they were doing is redistributing stuff people have seen. now you have original shows like stranger things which i admittedly love. "space force." may counterbalance "the office" taken off netflix we heard recently. movies, i'm not afraid to admit, "the babysitter" which is netflix original came out last fall. the original content going for them is big and another reason
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they joined the motion picture of america recently. neil: i'm looking at the love these stocks, i lump them in, not too generally with the googles and what has been happening with apple and amazon and microsoft. now, with the exception probably of apple, they have come storming back, these issues in the new year. so what is representative of this bunch this year? >> so far netflix has been one of the hottest stocks of the year. we mentioned the association they will have the mpaa. i think that is something interesting that the stock is starting to get excited about. don't forget in q4 as many tech stocks has trouble, netflix was not immune from that. they had a tough quarter. a lot of those stocks that we mentioned or you mentioned there have come back in a nice way because they probably got oversold to the downside. so if you're looking at maybe fangs in general because some of those tech stocks, especially netflix, keep in mind they had a nice bounce off the low of christmas eve last year. so if you're expecting things to
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keep going the way they are, they probably won't. there is probably still some growth ahead to be had. neil: we talked about volatility of the markets, notwithstanding major averages have been up double digits since the government shut down, not that the two are joined here or relate to each other. but if the markets are panicked about a shutdown at that could go on maybe a while, they're not showing it. why is that? >> they certainly have a funny way of showing their concern, don't they? the markets are up 10%, depending on your favorite index since the government decided not to work. maybe that is just an indication of maybe that is what the market wanted all along but look, and i think another thing would be interesting too, we're coming up to debt ceiling issues as well neil. bonds are not reacting. bonds are relatively flat, stable, not volatile. trillions of debt that we're racking up year-over-year now seems to be a big concern is really not affecting our bond prices so that along with the stock market seems to be saying
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this maybe isn't that big of a style as some of the democrats saying it is. neil: you look at outside events, you know these are fleeting events that come and go, the china trade thing could be more sub san tiff. you're getting talks that will go on and both sides a fratful. how does that play into your market strategy? >> a lot. we've been talking about that for the last three to six months. we take the two steps forward and occasionally a step pack it impacts the market. what you're starting to see not only in the price action for the s&p 500 but look at company earnings. we're coming into a pivotal company earnings season here and we're starting to see from some of those multinational companies which make up big part of the s&p 500 talk about tariff impacts and input costs rising. as you take away token or two
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from what companies say next two weeks, look at what they're say about the trade wars and tariff issues because that might affect the tech stocks and stocks you own. neil: well-said, my friend. despite your artistic preferences, and movies. >> you have to check it out. neil: absolutely. thank yous scott. interest rates are fairly flat here. we haven't heard anything back from democrats, more to the point nancy pelosi on the president's comments and letter to say, that state of the union address, i think we're still on. i will see you next week. we'll see. things we don't want . but when it comes to colon cancer screening... i'm not doin' that. i eat plenty of kale. ahem, as i was saying... ...with cologuard, you don't need an excuse... all that prep? no thanks. that drink tastes horrible! but...there's no prep with cologuard...
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neil: all right, 50 points on the dow right now about 24,461 to welcome come everybody. you are watching fox business, "cavuto: coast to coast." a lot of them developments including two separate shutdown the u.n. the senate tomorrow. here is the thing. neither seems to have a chance and you know what is passing or getting the 60 votes necessary to lead the way to nms government shutdown. having said that, the president determined to give his state of the union address next week, wrote a letter to nancy letter to nancy pelosi state homeland security is fine. capitol hill believe security is nine so they'll pop up to the house next week and give that address. the response from her.
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let's get a read on the committee for ensemble federal budget, president by a guinness. we've also got david mcintosh. market watcher bill flynn as well. obviously, this whole thing has gone on way too long. 33 days. the president has been arguing that we need funding for the wall, but we've already spent that in more in the shutdown, the cost of the wall. i'm wondering what you make of these figures. >> well, the main thing i make about all of this of course is a just reflect to about massively dysfunctional our government is right now. the story is so much bigger than just the wall. it's that we have two parties who don't seem able to run the country. when it comes to the numbers, the cost of the wall is lower than the overall economic losses have already endured from the shut down in their growing every week this goes on.
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you can't run a country by threatening to shut it down if you don't like the terms of the negotiation. they're going to be disagreeing for the rest of the year on just about everything. we've got to find a better way to resolve problems. sure into it's an apples and oranges kind of thing. what you make of the president saying he will do the address next week. we're waiting for response from nancy pelosi, but what hypothetically if she were to say no you can't come. >> the president i think will still be able to command the audience to give his speech on his view of the state of the union. it would just be unfortunate if policy made it such a sticking point in this is really a power struggle between nancy pelosi the new democratic congress in president trump. i started asking democrats, is there anything you would agree with trump on and the hard-core left is better now steering her caucus couldn't think of a thing. as long as that power struggle is going on, i'm not very
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optimistic about the government reopening. the good news is the rest of the economy is humming along. we still have high gdp growth, low unemployment and low inflation. neil: phil flynn, they been all over the map stocks have gone out. and it's almost as if this is a non-event if it drags on much longer. maybe not. but when you make of that? >> i agree. if you look at the market, they realized this is just a political sideshow right now. even though there's a lot of people projecting this will take a toll on u.s. growth, the u.s. economy is so robust they can look beyond that. we have a report right now the archelaus came out with the latest downgrade of economic wealth that the gdp from 3% to 2.5% just because of the government shutdown. there's a lot of traders down here that are buying it. they think that the doom and
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gloom reports about how it's going to hurt the economy is only going to be temporary and it may even create some growth down the road. one sector that we watch down here a lot of the energy sector. that sector, the trump administration is saying that the vital in the tree. they're keeping that going. one of the biggest growth sectors in the economy is not going to be impacted so maybe some of this talk is substantially slower growth or way overplayed. tree until you, a report today that has global government debt at north of $66 trillion. we account for about a third of that. our federal government. so it's a ticking time bomb the world over. people get worked up about the five times $7 billion wall, but that is just part of a far grander equation here and apparently shared worldwide. >> certainly the later saddam poses one of the topics of conversation. global drought is that record
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levels. the fact the u.s. debt is growing at a time of economic strength is particularly troubling. it goes to the point that we can't just keep borrowing for everything we want to do whether it a wall. whether it's the fact we borrowed $320 billion to increase spending and we still couldn't pass the budget and keep the government open. or the fact no matter what the policy is we are discussing these days we are talking about borrowing instead of finding a way to pay for it whether it taxes or cutting spending. take your pick you shouldn't be putting this debt out there. we are not the only country doing that. we see this going on around the world and it doesn't mean we're in better shape than other people are in worst shape. it means there's a real global economic risk from all this borrowing in the warning bells are ringing quite loudly. >> you know, david, and you are hearing what is happening on
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capitol hill and all these democrats taking over key committees in those who will participate on those committees. higher taxes something that is going to be a key theme for them. if we look at the house budget plan, doesn't necessarily have to go very far and it likely won't. i always think this is about setting the table for 2020. what you think and what has you worried? >> i totally agree. it's all about the election in 2020. democrats don't want to pass anything really. they just want to tear away a president trump and win the white house back in the next election. the tax proposals would do great harm because it takes away the momentum is created in the 33.5% growth rate and they want to impose taxes that would put us back down at the 1%, 2% growth rate at best, which is bad for all americans.
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the key for republicans is to regain their credibility in and they don't have it on spending neither. their rebate and -- regain credibility that they'll manage utter if given difference. >> to work to the other side, i know it's very cynical when you look at it with the inability to come together on the agreement to keep the government from closing down yet again. but if they could come together with something like that. they agree on the broader issues for example on immigration reform. they actually do agree on broad parameters of that. they do agree on the real culprit is maya would tell you in our building deficit and that is programs and the like that are simply growing beyond what is sustainable. so this would be an opportunity to do some thing. i'm just cynical that they will. >> you should be cynical. this is a political football. i'd like to say the democrats
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reform -- were for the wall before they were against the wall. everybody agrees that border security is the number one issue. the gatt similar to what they did with the keystone pipeline. everybody knew the keystone pipeline absolutely made to. it was the safest way to transport oil and the safest way to move the oil that was connected moot anyway. it was all about politics. think of this new wall to win and the only way this is going to get solved is when both parties realize there's political damage done from both sides announcing they're going to come together. >> guys, we have some breaking news double cup is a little bit short. nancy pelosi has finished up a meeting with the california delegation at the capitol so this was her first chance to be questioned on this letter she got from the president saying he is cleared to go on june or 20 night before his state of the union address.
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some dispute that, but she had no comment on that. ignore the question. right now we are waiting to see what her official reaction would be. again, chad pergram, capitol hill producers dana says from the house and senate. one key player in not as responding to the president latest overture that it's fine. i'm ready to go. we shall see. after this.
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turning to albright, venezuela's opposition leader has just declared himself the interim president of venezuela. nicholas maduro is a fraud and should be recognized as a leader. his argument is that the united states recognizes him as well in that capacity. trish regan will be speaking to the vice president of united states about this and other developments here, please been apathetic and pathetic too long suffering venezuelans who've seen all of their riches were to deteriorate under president maduro whose violent leadership of the country has driven it into debt and far worse. in fact, right now it is considered a dictatorship in the eyes of the white house in this
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interim call by nicholas maduro to dismiss that this young guy who was an up and comer, 37 years old i believe in shouldn't be seen as the new leader of the opposition movement modeled on the new leader of the country has effectively declared himself the interim president. that kind of country coming to trouble. china's vice president is saying china and the u.s. need to work together. edward lawrence has the latest on that. >> what's going on here. the one negotiation not affected by the government shutdown is china. the u.s. trade and delegates are working for the meeting they'll have next week. the vice premier of china, u.s. treasury secretary and trade representative robert y peyser on january 30th scheduled to last two days. i am told the meeting will be critical to see if the chinese are serious about going forward
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to address the u.s. concerns on paper. having something in writing. with davos today, the vice president took a dig at donald trump's trade policies are those in here through the voice of a translator. >> translator: what we need to do is make the pie bigger while looking for ways to share it in a more equitable way. the last thing we should do is to stop making the pie and just engage in a futile debate on how to divide appeared shifting blame from one problem to the other will not resolve the problem. >> the chinese economy stumbling one day after they announced the slowest growth in 28 years. china's central bank says they're abusing 37 and $20 billion of liquidity and the medium-term facility in order to spark lending with big banks and small banks. that's where it's going. the chinese still demanding the extradition order for the huawei
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ceo and the foreign ministry saying, quote, and sections about u.s. are highly political and very nature scientific olean. the real motive of the u.s. side is clear for all to see leave no in oppressing high-tech companies and depriving china of its legitimate development right. the justice department said they will meet all extradition deadline in order to extradite the huawei ceo. they want to prosecute anyone who could like the sanctions against iran. many in the fire here. all of them seem to converge on january 30th. the official extradition order in the first meeting with the vice premier. neil: so many things that can get in the way the deal here. not least of which presidents have a tough talk in davos. china's top official saying effectively of the 90s they
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shifting blame for one's own problems. "the wall street journal," the coming collapse of china on the subject. gordon chang. that is pretty in-your-face to say hey, we hope to have a deal. paraphrasing here, but don't keep shifting blame for your problems. >> i think the main problem is china each year steals hundreds of billions of dollars. >> they never did that. >> and we've got a lot of that. they don't even want that to be a subject. >> when you look at micron how the net chips stolen, you just multiply that across the sector. either by force taking her out right up to deprive the u.s. of innovation. we increasingly have an innovation-based economy. if we can't commercialize that, we don't have a first world economy. the vice president and other
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chinese officials have got to acknowledge that it is they are not willing to do so. >> a lot of people talk about the president's tactics, to in-your-face in this approach is long overdue. we can argue whether this is the right way to go, but if he gets results, if he gets a commitment to buy more goods and even gets them to bend a little bit on stealing stuff from us, we just have because they don't do that, then what? >> that's a good question. we'll see if we even get that far because we are really hung up on this chief financial officer in canada. >> for them is very germane. >> are these trade talks even going to go further because those china has already politicized, link those two issues together. if they're not willing to talk about technology, how will we ever get a trade deal with them? that is the key point of what
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we're trying to accomplish with them. we see our technology being taken and innovations being stifled and markets who want to go into in china that we can't because of the regulatory red tape in china. these are big structural issues in china. what is going to motivate them to change that? i just don't see. train to the argument is they need us more than we need them. i have this by. you long suffered that we are more vulnerable to this than they are in that they read what is going on politically in the air waiting us out. >> they are trying to wait us out but they really can't because their economy is growing last monday created a sensation across china by saying the chinese economy is contracting or growing no more than one point asked 7%. not the six-point sixth are claiming. when you look at the underlying indicators come you to look at
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and economy somewhere hovering around zero. his political permit right now at the top of the communist party. xi jinping is having increasingly difficult times achieving consensus. president trump has an election coming up. xi jinping has an election every day. he would like -- >> as long as life is good. >> ud and still to smite the party and there are more no more rules which means that there is no more rules he could be gone tomorrow. >> there are no winners and losers in this. what happens in china has a direct impact u.s. companies. u.s. consumers. we pay higher prices. our companies don't want to produce. they are afraid to make investments because the uncertainty and trade. >> i know it doesn't get much discussion, of course i'm so
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glad -- that might have fostered this consumer slowdown. >> i think it does. we are seeing that in the consumer sentiment numbers. this is not just an issue for now, but an issue for 2020, which is already on the horizon. his sole premise of successes based on the market and the economy doing well. if you go in the 2020 because of the trade spat, you'll deal with the claim that as a win. tree until you get a deal, but it seemed to be a lousy deal. then what? >> then you have democrats complain in a sewer and he started to see. by staci. so far, who's been paying president trump stares quote, unquote. basically the chinese are good they are buried 80.4% of those tariffs. that's pretty good news for us when you think about it because
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although no one does like tariffs, the point is you've got to impose costs on china because if you don't go continue to steal rip. >> it's enough of a wedge for a deal. >> chinese, the ratio is not going to hold when you put my tariffs on it because the administration has been strategic when you start putting my tariffs on you become a strategic. the point is we are going to have to suffer because you cannot allow this situation to continue. it is going to hurt, but that's a consequence of misguided decades -- decades of misguided trade policy. neil: a long way to resolve from both your point. new orleans saints are suing the nfl. today even have a prayer? see what i did there. saints, prayer. all of this on basic cable.
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you're welcome, america.
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neil: i want to be clear here. the newer listings ticket holders even though the owner's team has complained over that botched call that they are arguing cost them a trip to the super bowl. judge andrew napolitano and home for something like this could go. what you think? >> i think it dead in the water. i was horrified colonizers almost around the sod. certain thing the courts can't resolve. the court don't exist in order to right every wrong otherwise we'd be running two judges every time there was an injustice in the world. the lawsuit basically asked a judge to force the nfl
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commissioner to exercise discretion that authority exercised. they just don't like the way he exercised it. there's a rule that gives extraordinary authority that allows them to nullify the outcome of the game. he's exercise this discretion and decided this is not worthy of a new game. neil: from the point of playing, minute 30 or so, whether it is disputed, that are there. when you think about? >> is the same principle. you can redo his tree and i would be a fair event. the commissioner has the authority to say yes or no. his exercise that authority in the know. this lawsuit is dead in the water and in most states the lawyers who filed that would be required to reimburse nfl for the fees incurred in hiring lawyers to resist it. neil: it's going to be wild. the back-and-forth over whether the president can speak to
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congress next week in the house, he wrote a letter saying i get the whole player. steny hoyer, the number two house democrat was speaking about this issue. he didn't seem to have a problem. >> do you think the president decide how i want to go there in person and address everybody, would you, steny hoyer be open about? >> sure. >> he did nancy pelosi would? >> i don't know what the discussions have been so i don't want to say. >> we have the separation of powers. all three branches are equal. we also have something called comity, which means mutual respect between the branches. she may personally dislike the president. she may fiercely resisting, but she had to respect the office and in my opinion let him speak. under the law he can't speak
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unless the house of representatives votes to invite him that the senator of course will invite him. if the above doesn't take place arafat goes down, not welcome in not building. as weird as that sounds, that the law. neil: what if one side says okay and the other says doesn't. neil: on transparent doesn't happen. and requires the consent of both houses. no question what the senate will do when no question what republicans in the house will do is mrs. pelosi lets them though she might not even let this come to the floor to go. she's probably thinking i was about to get on a plane last night and he took the fuel out of the plane so to speak. i don't like this sort of actin forward. >> legal issues that we can't hear. i am worried the ominous whether
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the president speaks bear or reread up in the government, but that it's poison the well for the next two years. nothing is going to get done. >> i think you're right. some people are happy about that. the president may say look at the money and saving you. 800,000 people not working. he hasn't said that, but i can hear him say that and it's really causing a lot of human misery. you can't make people work without paying them and you can just summarily tells almost a million people you're no longer wanted here through no fault of their own. neil: by the way, when you work with the tsa, the air traffic controllers going on strike, when you're not getting paid, you have to show a. >> you've agree to that before he took the job. you waive your right to get paid. >> of the >> of it goes over 10% right now, what is 10% of tsa workers.
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those are jobs vital to national safety interests. so what happens in vegas to 20%? >> i don't know. it requires a lot of training. that could very well be the national emergency is looking for. if the airlines can fly because tsa doesn't have enough workers to examine the passengers. >> this is for people -- [inaudible] >> what you think my name is gasparino? neil: thank you very much. judge judge napolitano appeared with robot at him. where shall he knew the new orleans saints and because i was out of my element. ibm is back in vogue. every dog has its day and for years ibm was the dog. now it is on fire. or is it?
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neil: is ibm cool again? other than expected earnings. they are all being ignored right now for a market that is suddenly seeing this blew back with a vengeance. "fbn:am" cohost lauren simonetti. reporter: shares are certainly in the black today. at one point the stock was up the most in 10 years. up a .3% right now. the best performance in 15 months. ibm is often called the dog of the doubt because it sank about 25%. we saw them at the ibm's earnings report. what we saw in that report is to come back today. other than that quarterly
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profit. 79 points 6 billion for 2018. i want to highlight that number. half of it came from strategic initiatives that includes cloud computing, mobile, and data analytics. social media and cybersecurity. helping to justify ibm's purchase of red hot last fall for a whopping $34 billion. ibm's largest deal ever expected to close in the second half of this year. she's been on the job since 2012. she's banking on growth in the cloud where many businesses will need service out but not as one big way ibm is going to compete against amazon and microsoft and also that google. you could maybe add ibm to that list of highfliers. >> are all up in the clouds. >> and now there is a hybrid
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cloud. different dimensions of the cloud. neil: thank you very much, lauren simonetti. a lot i look at because for me my personal is housing because between new and existing home sales, startups in the light, housing starts with a point of industry confidence. there is trend in the data of late that is noteworthy. it's not ever going back to meltdown levels, but homes are selling fewer and further in between and the hike in prices this low in as well. why that could be problematic for those buying and selling. after this. ♪ earn $100 off... ♪ off your deductible. ♪ deductible. ♪ for every year of safe driving. ♪ ♪ for every-- for every-- ♪ ♪ for every year of safe driving. ♪
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neil: we just got word that michael cohen, the president's former letter was all set to make house testimony of february. he went to a friend citing threats are no less the president and others. his lawyer putting out a statement saying he volunteered to testify before the house oversight committee on february 7 on february 7th to ongoing threats against his family from president trump and mr. rudy giuliani, the president lawyer. as recently as this weekend and to continue cooperation in the ongoing investigation in the
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appearance would be post onto a later date. he wishes to thank elijah cummings. the man who runs the house oversight committee and looks forward to testifying at the appropriate time. these are some of the variables that enter into a day that don't necessarily move the markets but they add to the uncertainty around an ongoing investigation in the back coupled with leaders and all those concerned about growth in the ongoing government shutdown. you get into the mix and you have to trade on it or not trade on it. what you do with all this stuff? >> i'll tell you why. it is difficult in my many years in the market this is the most number of headwinds i've seen in quite a long time. you have the mueller investigation. you have to read first. you have the china tariffs. you have with the fed going to do. you have the government shutdown. you mentioned before this segment housing numbers.
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that is something i also look at. neil: what you think of them? i'm not saying they're crashing, but they are not magical. >> very worrisome. i'll be honest with you. that is the key indicator. i think it's a key indicator a lot of people look at. it didn't used to matter years ago when it was difficult to figure out what the worth of your home is now. now you can check in on cello or any other site just like you can with the stock market. a lot of people, especially in my age, maybe at your age might be looking to bounce his to sell their home on the other homes in the neighborhood to say nothing is moving. i might not even get the price back. i thought we went past us in 2008, 2009. but here comes again and it
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makes people feel a lot less wealthy. neil: yeah, were going to get into that. in the meantime i did want to get your sense about the consumer. the tariff issue back in for it, the fact of the matter is governments don't pay tariffs. we do. the chinese citizens do. i am wondering when you crunch numbers better than i whether billions we've been paying on these goods going into the country has worked as a depressant on the consumer that they added angst. >> i would say that's accurate. it is at the margin if you will. i have seen a creeping up in small things. thankfully the price of gas is going down. you can't walk into the supermarket here that their normal shopping experience every week in sea prices not going. you look whether it's in
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vegetables or poultry. even cold cuts for crying out loud. neil: are you kidding me? >> i'm telling you, you could have found that mice were fed turkey, you might as well buy a sirloin steak. it's expensive. neil: you really are depressing me. kerry beat, thank you very meant. back on the housing story, the former fannie mae executives and much, much more. i do want to overplay batting kerry was careful not to as well but you do wonder what is going on with housing. not saying it's anything akin to of experience in the meltdown that they are taking longer to sell and not preaching the prices they were. what do you make of that? >> mike emanuel. nice to see you. not concerned yet. the market seems to be acting rationally. we looked at the last couple of years and say that's the normal we want. you'll see home price
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appreciation when you got in terms going up 2% a year. he wanted to see some change. reflecting back to the in september or november. the high trajectory industries were 40, almost 50 basis points higher. momentum and valuing comes out of the market. however, rates back down to 4.5% or so and you quickly see the mortgage applications go up in a home purchase side. i'm not concerned just got. neil: doctor leaves me somewhat. i do want to get your take on the effect of the government shutdown on this industry you follow them know so well. fha backed loans are simply frozen for the time being. people can't close those until they're all resolved. i don't know what percentage of the loan they make or awaiting
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to be closed. what kind of an effect? >> the mortgage bankers association did a good job of fixing the sense in terms of doing certain verifications to get the loans approved and ultimately onto somebody else's balance sheet. that seems to be managing itself pretty well. the government shutdown, think about this in the context that housing is a confident game, but this is all about confidence. anxious people don't buy homes. confident people buy homes. if you're starting to see everything from brexit to trade wars to government shut down on the face or in the background of the narrative associated with a softening housing market, that tends to build on itself and nobody wants to catch a falling knife. while i have earned that if you see things maintaining altitude from a value is, but then you start to see things drop in the
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spring were going amazing value, were in for a world of hurt i'm afraid. >> it requires three things. interest rates have got to maintain. you've got to see inventory doesn't get out of control. seems very manageable and you've got to see employment. if that's the case i don't see anything to worry about. neil: knock on wood. good seeing you again. just to bring you up-to-date on some news involving michael colin who is set to testify next month on his dealings with the president, businessman john tierney says he wants to postpone his testimony citing the president tweets about his family and attacks on his family. we've not gotten a response from the white house on all of this, but this was going to be political theater to the max. his lawyer saying that they'll
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find a better and more safe time for him to testify on the hill and now is not that. more after this. now when you go out, you cash in. what's in your wallet? but when i started seeing things, i didn't know what was happening... so i kept it in. he started believing things that weren't true. i knew something was wrong... but i didn't say a word. during the course of their disease around 50% of people with parkinson's may experience hallucinations or delusions.
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neil: getting confusing following all the candidates already announced running for president. we'll get a lot more. you say because you're a nerd, neil, i follow the money. i follow it in all demommizations. i think money in small
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denominations says a lot. this is the guy who said barack obama was raising a lot of money when he was running against hillary clinton in 2007, going into 2018. i said, watch this guy. there are tapes of me saying watch this guy. because there was a great deal of enthusiasm for him. the same enthusiasm building for bernie sanders, with $50, $75, denominations that got attention of big money guys who follow suit. you know what happens. when i heard kamala harris, junior california senator was getting 1 1/2 million bucks raked into her campaign within 24 hours of her announcement running for president, tying a bernie sanders record, i said to myself, self, watch this woman. now maybe very, very early. it bears watching to democratic commentator danielle mcglocklin who knows more than i do on this subject and criminals wilson,
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gop pollster. early on kamala harris is proving a candidate draws interest across the board? >> one of the benefits of announcing earlier. as you know i worked on ted cruz's 2016 campaign. he announced on march 23rd. he was the first republican to announce of 2015. she is announcing earlier. elizabeth warren announcing earlier. neil: both sides have not gotten the immediate bang for the buck she had. >> no they didn't. after senator cruz announced, was raising $2 million in 4hours. i wasn't able to find comparison. rand paul had similar amount. more like, whenever, she participates in the platform, and shy announces it is such a simple task to for some kwan to write, send her $40 donation. that doesn't necessarily mean they won't make the same $40 donation to cory booker if he
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announces or hillary clinton announces again. neil: i understand what you're saying. that danielle, that building online base and builds social media people following. that list grows and grows. what are we to make of early return on their part? >> i would use bernie sanders as an example. he left the 2016 campaign with 2.5 million which is huge donor base to reach out to, time and time again not only for money and policy, his own recommendations and other kinds of races. it is about the money. it is also about contact you can have with people, utilize to spread the message even further. 2.5 million is 1% of the u.s. voting population give or take. any concern people might have we'll go to the well too many times on democratic side, there is huge amount of space to grow. most people don't donate to political campaigns for any number of reasons not least of
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which they're not tax deductible. i think the well is big. i think we'll see this on the republican side as well. although democrats made a much bigger deal about overturning citizens united, getting back to the idea of small donations. neil: chris, i wonder this too, you might have experienced it with ted cruz, it starts something, start as conversation. usually a conversation with younger voters, not all the time, but they're technologically savvy ones and that, you want to get the passion going right away, right? >> you do. that is a benefit, you're right about the harris campaign and some of the other campaigns in terms how they're going out building these national bases and communicates on wider basis. my point, democrats have wider pool to apull from small dollar donors gee metally from where they have built out where republican campaigns have to do i had individually. when ever kamala harris does that, doesn't mean other candidates won't do it moving forward. it shows maybe she is building a
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different type of movement than we might expected, junior senator from california announces for president. yeah here and 20 others. neil: you will need a lot of money to stand out, danielle. is it your sense likely three or four get a lock on that? >> on the money you mean? neil: yeah. >> i think clinton is good example. clinton didn't make too much noise when she took pac money. in the end she won the nomination. larger pool of candidates, younger candidates, also looking at millenials, who are going to be largest voting bloc in 2020 election. i think small donor base and rejection of corporate money and pac money will matter more to the younger voter, we hope in terms of the functioning democracy actually do show up and vote and use the voting power regardless who they vote for. neil: thank you, danielle. thank you, chris. as we were chatting here,
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nancy pelosi has apparently responded to the president wants to deliver the state of the union address on january 29th. two word response, stay tuned. okay. here is charles payne to take you through the next hour. this could be interesting drama developing. charles: neil, never dull moment. a letter from the president, i don't know where you will be next week, nancy, but i'm giving the state of the union. neil: by the way i'm coming to your house to storm the refrigerator tonight. charles: what else is new. neil: come on. jo thanks, neil. i'm charles payne. this is "making money." now moving up back at this hour. what you need to know. a lot has to do with earnings. but other things going on. i call it investing 101. i have advice for long-term investors. also shorter term day traders as well. senate is set to reopen the government but will both competing proposals go down in flames?
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